Indonesia Plans Increase in Palm Oil-based Biodiesel In 2025
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JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is checking fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the energy ministry stated.

If executed, the B40 required could increase biodiesel intake to approximately 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

"We hope the trials could be finished in December, so that full execution of B40 might be brought out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to fulfill B40 demand, with set up capacity expected to increase to 20 million KL annually next year from 18 million KL now.

"However we will need more raw materials to fulfill B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

The biodiesel industry would require 13.9 million metric tons of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million loads needed this year, he included.

Indonesia's greatest palm oil association GAPKI stated a decline in exports suggested there would suffice raw products to provide the B40 mandate for now.

But the industry would need to examine "which one would be more important", GAPKI chairman Eddy Martono said, referring to the possibility an increase in exports would make supplying the domestic market less viable.

Indonesia's palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% increase from last year, while exports are to decline by 2.47% to 29.5 million loads as domestic usage rose, driven by biodiesel mandate.

The ministry had evaluated the biodiesel, mixed with 40% of palm oil, on a train for the very first time previously this week, while preparing to evaluate the B40 mix on farming equipment, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati